Warner Bros. and Legendary are nearing an agreement to resolve the conflict regarding Godzilla vs. Kong's simultaneous streaming release. The two studios joined forces in 2014 to launch the MonsterVerse with Gareth Edwards' Godzilla reboot. The success of the film spawned Kong: Skull Island in 2017 and Godzilla: King of the Monsters in 2019. Both of these films put the universe in a position to see Godzilla and Kong clash. Fans of the MonsterVerse were understandably excited with the idea of seeing the two Toho monsters square off on the biggest screen possible.
Following a delay caused by the coronavirus pandemic shutting down theaters, WB and Legendary moved Godzilla vs. Kong to May 2021. However, WB shocked the entire entertainment industry in late 2020 with the announcement that every film on their 2021 slate would now debut on HBO Max the same day as in theaters. This decision came as a surprise to Legendary, especially since WB blocked a deal to sell Godzilla vs. Kong to Netflix for more than $200 million. It didn't take long for reports to surface that Legendary, who financed 75% of the film, and the stars and creatives involved with the film were not happy with the idea of a simultaneous theater and streaming launch.
It was reported just days after WB's announcement that Legendary took legal action to challenge this decision. Now, according to a report from THR, the two studios are close to resolving this conflict. It is unknown what the terms of this new agreement will be, and Legendary is said to be still negotiating with the talent involved with Godzilla vs. Kong about the new release model. All sides are expected to come to terms on an agreement that will allow Godzilla vs. Kong to be in theaters and on HBO Max on May 21, 2021.
The progress made between Legendary and WB comes not too long after it was reported WB might have to pay $250M for Godzilla vs. Kong. Such a potential payout for Legendary would go a long way in avoiding losing money on the film. Godzilla vs. Kong reportedly has a budget near $155M, but the additional money will help offset any marketing costs and will likely be used to pay the film's talent. For instance, it was previously reported that WB paid Gal Gadot and Patty Jenkins $10M each to compensate them for Wonder Woman 1984 receiving a streaming and theatrical release. Godzilla vs. Kong has a big ensemble, and many of the actors could have bonuses in their contracts for the film's box office performance. However, the streaming release will certainly cut down on whatever business the movie does in theaters.
Even though WB seems to be on the verge of completing deals to ensure Godzilla vs. Kong keeps the new HBO Max/theaters launch, it remains to be seen if they can hold firm on plans to do so for other films. They are still negotiating with Legendary about Dune, with director Denis Villeneuve pushing hard for an exclusive theatrical release. If Villeneuve comes out on top, it could open the door for Lana Wachowski, James Gunn, and others to push for similar deals on upcoming titles like The Matrix 4 and The Suicide Squad.
Source: THR
